MEBL intends to establish an Exchange Company

MEBL, in a notice today, has announced its intent to establish an Exchange Company, a strategic move influenced by recent structural reforms implemented by the State Bank of Pakistan, we believe. MEBL’s Board made this decision of Directors and is subject to regulatory approval.

Primary objective

The main goal of MEBL establishing this wholly-owned subsidiary Exchange Company, with an initial capital of PKR 1bn, appears to be in line with the recent regulatory reforms introduced by the SBP within the Exchange Companies sector. These reforms are designed to promote banks, particularly those extensively engaged in foreign exchange transactions, to establish specialised Exchange Companies. Moreover, these reforms aim to enhance the efficiency and resilience of the foreign currency exchange sector in Pakistan. By doing so, MEBL will be targeting to make foreign exchange services more seamless and accessible to the public, aligning with the broader objectives of the SBP’s reform initiatives.

Courtesy- AHL Research